GET DAILY SIGNALSService Corporation International (SCI) Reports Mixed Q3 2026 Earnings with Revenue Beat and Guidance Miss
Key Takeaways
- Service Corporation International (SCI) reported third quarter 2026 adjusted earnings per share (EPS) of $0.97, slightly below the consensus estimate of $0.99.
- Revenue reached approximately $1.11 billion, up about 4% year over year and modestly above the roughly $1.10 billion analysts expected.
- Management issued softer-than-expected guidance, projecting fourth quarter 2026 EPS of $1.10 to $1.20 versus a consensus of $1.33, and full-year 2026 EPS of $3.94 to $4.04 versus a consensus of $4.19.
- Net income attributable to common stockholders rose to roughly $141.3 million from $117.5 million a year earlier, supported by higher pricing and preneed (pre-planned) sales momentum.
- For more context, explore SCI's Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
- To discover AI-driven trading ideas across the market, explore Trending AI Robots.
Earnings Context and Why It Matters
Service Corporation International (SCI) is North America's largest provider of funeral and cemetery services, a business prized for its defensive, demand-stable profile. With funeral volumes largely flat and the cremation mix steadily rising, SCI's earnings growth increasingly depends on pricing discipline, preneed cemetery sales, and capital returns rather than raw service counts. This third quarter report was therefore closely watched as a test of whether those profit levers could keep earnings growing faster than revenue. The result—revenue that beat expectations but adjusted EPS and forward guidance that fell short—highlights the tension between resilient top-line demand and a profit trajectory that investors had already priced at a premium multiple. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the third quarter ended September 30, 2026, SCI posted total revenue of approximately $1.11 billion, an increase of about 4% from the $1.06 billion recorded in the prior-year period. The top line came in slightly ahead of the consensus estimate of about $1.10 billion.
On the bottom line, adjusted diluted EPS came in at $0.97, two cents below the $0.99 analysts had projected. Net income attributable to common stockholders rose to approximately $141.3 million from $117.5 million a year earlier, with higher pricing and continued preneed sales strength supporting the year-over-year improvement even as results modestly trailed bottom-line expectations.
The most consequential element of the release was guidance. Management forecast fourth quarter 2026 EPS of $1.10 to $1.20, below the consensus of $1.33, and narrowed full-year 2026 adjusted EPS expectations to $3.94 to $4.04, also below the consensus of $4.19. The softer outlook—not the quarterly print itself—was the primary focus of investor attention. From what I see, the guidance shift stands out as the key signal here.
Market Reaction and Investor Sentiment
Heading into the release, sentiment was cautiously optimistic: analysts had largely held estimates steady, and the stock traded in the upper half of its 52-week range. The mixed result—revenue above forecasts but adjusted EPS slightly light—was overshadowed by guidance that landed clearly below consensus, particularly for the fourth quarter. The gap between management's fourth quarter EPS range of $1.10 to $1.20 and the $1.33 consensus implied a meaningful reset of near-term profit expectations. With SCI trading at a premium valuation relative to peers, the cautious forecast amplified concerns that pricing and preneed growth may not fully offset the margin pressure created by the industry-wide shift toward lower-cost cremation services.
Forward Outlook and Key Factors to Monitor
Investors will focus next on whether SCI can close the gap between its guidance and the market's earlier expectations. The fourth quarter is historically SCI's largest earnings period, driven by seasonal mortality patterns, so its performance will be a key test of the company's revised outlook.
Pricing power remains the central lever. Average revenue per funeral service has been a steady source of growth, and its continuation will be essential to offsetting the drag from a rising cremation rate. Preneed cemetery sales—where customers pre-purchase property and services—remain the genuine growth engine, locking in future revenue and generating recognized income over multiple years.
Finally, capital allocation deserves attention. SCI has leaned on share repurchases and its dividend to boost per-share earnings, and free cash flow generation will determine how much firepower management retains for buybacks, acquisitions, and continued debt reduction. These factors, rather than headline funeral volume, will likely shape how the stock trades in the quarters ahead. I’m watching this closely as earnings season continues.
Using Tickeron’s AI Screener for Sector Insights
In my own research process, I turned to Tickeron’s AI Screener to quickly filter comparable names in the consumer services space and check technical patterns alongside fundamentals. It helped surface how SCI’s setup stacks up against peers during earnings season without spending hours on manual scans. This kind of tool adds efficiency when evaluating valuation resets and growth levers like preneed sales.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SCI in upward trend: 10-day moving average crossed above 50-day moving average on October 22, 2026
The 10-day moving average for SCI crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on SCI as a result. In 50 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
The Moving Average Convergence Divergence (MACD) for SCI just turned positive on October 08, 2026. Looking at past instances where SCI's MACD turned positive, the stock continued to rise in 22 of 40 cases over the following month. The odds of a continued upward trend are 55%.
SCI moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCI advanced for three days, in 167 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
Bearish Trend Analysis
The 10-day RSI Indicator for SCI moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In 26 of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
SCI broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SCI entered a downward trend on October 14, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 29 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 32 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 46 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. SCI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.315) is normal, around the industry mean (7.735). P/E Ratio (21.376) is within average values for comparable stocks, (10.926). Projected Growth (PEG Ratio) (1.390) is also within normal values, averaging (4.440). Dividend Yield (0.017) settles around the average of (0.080) among similar stocks. P/S Ratio (2.589) is also within normal values, averaging (1.645).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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Fundamental Analysis Ratings
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General Information
an operator of funeral homes and cemeteries
Industry PersonnelServices